The net income from residential property increased 7% YoY, to RON190.4 million, due to the revenue recognition of the new developments where construction began between 2022 and H1/2024.
Rental income including revenues from services to tenants increased 19% YoY to RON 75 million in H1’24. Net rental income saw a 26% YoY increase.
“The combined 10% increase in profitability of our two core segments, to 49.1 million euros, underscores the strength and resilience of our business model, based on performant residential and office divisions. The dedication of our sales and leasing teams has been crucial to our solid results, which will be reflected in future revenue and net profits in line with our revenue recognition policy. Despite industry challenges, our commitment to offering the highest quality residential and office spaces remains our winning strategy, enabling us to maintain strong financial stability and a positive outlook,”said Victor Căpitanu, Co-CEO of One United Properties.
The revenues from sales of residential property saw a 13% decline due to many construction sites reaching final stages that have less completion advance compared to the heavy works in the initial stages, reaching RON 524.1 million.
Nonetheless, the net income from residential property increased 7% YoY, to RON 190.4 million, due to the revenue recognition of the new developments where construction began as of 2022 and 2023.
The net margin from residential sales increased significantly, from 29.5%, as recorded for H1’23, to 36.3% for H1’24, due to construction progress.
The Group leased and pre-leased 8,100 sqm of commercial spaces and signed multiple lease extensions for a total area of 6,770 sqm in H1’24.
“The first half of 2024 marked a high level of activity for One United Properties as we expanded our iconic One Community and advanced our construction projects. With 12 developments underway, including the transformative One Athénée and One Gallery developments, our work will leave a lasting impact on the city of Bucharest. While the market presents challenges, the scale of our operations is unparalleled, and we are confident that the results of this immense effort will be evident in our financial performance in the coming quarters as we begin delivering high-quality residential units and office spaces to our customers,” said Andrei Diaconescu, Co-CEO of One United Properties.
As of June 30, 2024, One United Properties had 12 developments under construction, encompassing 4,041 residential and commercial units and nearly 45,000 square meters of office and commercial space.
Amounts to be received under contracts concluded with customers as of June 30th, 2024, will total 331 million euros in additional cash by 2026.
(English version by Catalina Apostoiu)